In Ontario, every insurance company must have rate changes approved by the Financial Services Commission of Ontario (FSCO) and each quarter, FSCO publishes these rate changes.
Auto insurance rates have decreased by an average of 0.15% in Ontario, FSCO reports. This is the second quarter in a row that rates have decreased. In the previous quarter, rates decreased an average of 0.50%.
“Consumers are urged to shop around for auto insurance,” says FSCO. “Ontario has a very competitive marketplace. Rates for the same coverage vary based on each insurer's claims experience and the insurer's rating system.”
Not necessarily. Just because rates on average have decreased does not mean your rates are guaranteed to go down next time you get your renewal. According to FSCO’s announcement, “an individual policyholder may experience a rate change that is either higher or lower than the industry-wide average rate change, or the average rate change for a particular insurer, depending on several factors”. Some of these factors include: the vehicle you drive, where you live, your driving and insurance history, as well as the coverage options you’ve chosen.
• Related Read: Cheap(er) Car Insurance: How to Save Money
Back in August 2013, the Ontario government announced it was targeting an average 15% decrease in car insurance rates by August 2015, but this deadline has long passed and rates haven’t decreased as much as promised; it’s estimated that rates have decreased about seven per cent.
Premier Kathleen Wynne admits, however, that the target to cut auto insurance rates by 15% was a “stretch goal.”
“We always knew it was going to be a challenge and the good news is that insurance rates continue to come down.”
It may come as a surprise to many people, but insurance rates often change. (FSCO publishes the latest rate changes every three months.) Sometimes only a few insurers change their rates, and other times dozens change their rates. This is why it’s important you spot check your rate on a regular basis. Don’t assume that savings will come your way on their own; compare car insurance rates today to see if you could be saving money on your auto insurance.